BancBoston Robertson Stephens Initiates Coverage of the B2B eCommerce Sector, With Buy Ratings on CMDX, ICGE, VERT
Business Wire - September 29, 1999 09:39
SAN FRANCISCO--(BUSINESS WIRE)--Sept. 29, 1999--BancBoston Robertson Stephens managing director and senior business-to-business eCommerce analyst Eric B. Upin today initiated coverage of the business-to-business (B2B) eCommerce sector with Buy ratings on Chemdex Corp. (NASDAQ:CMDX), Internet Capital Group (NASDAQ:ICGE) and VerticalNet (NASDAQ:VERT).
Chemdex provides secure-electronic marketplaces for the life sciences and specialty medical supply industries, enabling enterprises, researchers and suppliers to buy and sell products.
Internet Capital Group invests in and acts as operating manager of a collaborative network of B2B eCommerce companies. VerticalNet operates a portfolio of highly focused, vertical trade communities on the Internet.
"In our view, we are approaching an inflection point, where Internet infrastructure and models, IT systems, and broad market factors are setting the stage for the rapid expansion of B2B eCommerce," said Upin.
"Business-to-business trade vastly exceeds consumer transactions, accounting for 85 percent of total commerce in the U.S. Assuming 10 percent of B2B transactions move online by 2003, the implied eCommerce volume is $1.7 trillion. Globally, that figure could more than double, resulting in a profound investment opportunity."
"We are initiating coverage of the B2B eCommerce sector with Buy ratings on Chemdex, Internet Capital Group and VerticalNet," said Upin. "We believe the winners in this space will be new companies, as the B2B environment is very different and much more complex than business-to-consumer."
"We believe Chemdex is a major player and the first B2B eCommerce provider specifically targeting the $15-billion life-sciences-products marketplace," said Upin. "Additionally, the company announced its intention to expand into the healthcare specialty-products arena, a $68 billion market opportunity, through the acquisition of Promedix, which is expected to close by the end of the year."
"We expect Internet Capital Group will become the GE of the Internet, operating businesses that are market-share leaders in their respective industries," said Upin. "We believe that the stock will trade at a significant premium to its net asset value, based on the rapid growth and penetration of eCommerce among the B2B community."
"In our view, VerticalNet continues to build strong vertical communities -- laying the foundation for eCommerce transactions," said Upin. "We believe this strategy represents a critical element of B2B success -- offering quality content to grow loyal communities within specific industries, and converting these audiences to commerce customers."
"In addition, we are maintaining coverage of Concur, rated Strong Buy, and Primus, rated Buy, as we believe both companies represent strong B2B growth opportunities in the future," said Upin.
Clients interested in receiving more information should contact their salesperson at (415) 781-9700 or visit our web-site at www.internetstocks.com.
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